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Changes to Out-of-State Sales & Use Taxes

Posted By Faulk & Winkler, Monday, November 28, 2016

Louisiana law requires that you report out-of-state purchases on your Louisiana income tax for collecting sales tax. This is referred to as Use Tax. Effective July 1, 2017, Louisiana will require that a "remote retailer" or "dealer" who is not otherwise required to collect tax from Louisiana customers to provide a list of the names and addresses of any Louisiana customer whose purchases exceed $250 during a year. This new reporting requirement only applies to dealers who have sales of at least $50,000 in Louisiana during the year (including affiliates). This will apply to large online retailers like Amazon.


The seller must provide each applicable purchaser with an annual statement recapping total purchases in a year by Jan. 31 of the following year. This communication may be through email. By March 1 the seller must provide a list of the names and addresses of the applicable purchasers to the state. The list will only contain totals and will not be itemized in any way (i.e.: the state will not know what you purchased, just the total amount).


Although commonly ignored, Use Tax is not a new tax. This new reporting requirement is designed to increase collection efforts for the state by providing information on the amount purchased from out-of-state vendors where sales tax was not collected. However, some retailers may contest this law in court and how the state plans to enforce it remains an open question.


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